KSE-100 index plunges by 569 points

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Monetary policy decision due next week

Amanullah Khan

Karachi—KSE-100 Index plunged by over 569 points under heavy selling and profit making pressure to close in red at 39,771 levels here on Wednesday. Although the index level plunged yet the market volume remain in a high profile at 693 million shares traded in today’s trading session. The investors seem to have a wait and watch attitude for the Monetary Policy decision of the State Bank of Pakistan next week.
Meanwhile WorldCall maintained its position as the volume leader on the second consecutive trading session today with a trade of 63 million shares to their credit.
While PACE Pakistan as well as Bank of Punjab also maintained their positions with trade volumes of 55 million and 50 million shares respectively to their credit The upcoming meeting due next week for bi-monthly review of monetary policy. To this end, the status quo decision seems a foregone conclusion and we expect to see a more convincing vote count (eight out of ten members opted for status quo) as near-term inflation path remains unchanged while latest data on twin deficit is more supportive of status-quo decision. However, the easy decision entails one important unwarranted implication.